Crown West Doubles NC Portfolio With $61M Buy
CLAYTON, NC – New York City-based Crown West Realty LLC has acquired the 1.1-million-sf Carolinas Distribution Center distribution warehouse and cold storage complex at 1053 Shotwell Rd. for $61.25 million. The property was acquired from Fulcra Enterprises.
Originally developed by Winn-Dixie Stores to be used as a regional distribution complex in 1998, the property is a four-building facility that may be expanded by approximately 300,000 sf. Located between Interstate 40 and Interstate 95, it provides access to the entire eastern seaboard.
Crown West asset manager Ed Gargiulo tells GlobeSt.com that the acquisition price was $38 per sf for the dry warehouse space, $87 per sf for the freezer space and $1 per sf for the excess land. The property was acquired at an overall 7.5% cap rate. “The warehouse distribution market is healthy and getting healthier,” Gargiulo says. “We love the location of this property.”
It is currently 98% leased to tenants, including Hallmark Cards Inc., Smithfield Foods Inc., Kuehne + Nagel Inc. and HBI Priority Freight. Locally based Colliers Pinkard will handle the leasing and management of the center. No decisions have yet been made about whether new space will be constructed, although it is unlikely the space will be developed speculatively, Gargiulo says.
With the acquisition, Crown West more than doubles its North Carolina portfolio. The company plans to acquire other industrial and office acquisitions in the Southeast. “We think Carolinas Distribution Center is a great platform to expand in the area,” he says.